Regulatory Alerts2022-05-17
Reserve Bank Response to Submissions on NBDT Liquidity Policy Consultation
The Reserve Bank of New Zealand issued this response to 16 submissions received during its February and March 2010 consultation on liquidity policy for non-bank deposit takers. The regulator decided to adopt an amended version of the status quo option, requiring quantitative liquidity requirements in NBDT trust deeds that account for both the entity and its borrowing group. This approach aims to provide a minimum regulatory backstop and enhance investor information while imposing minimal costs on the industry through the formalization of existing practices.
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